Are you thinking about setting up investment accounts for your kids and/or grandkids?
Paragon Investment Capital can help you understand the difference between a custodial account (UGMA vs UTMA), 529 Educational Savings account, kiddie Roth IRA, a trust account, and more options to and help you decide which type of account is right for you and your family.
As a Certified Financial Planner®, we can help you navigate the annual gift limits, on a per-person, and per-couple basis, as well as the lifetime gift exemptions. Reach out to your dedicated investment advisor today to learn more.
Once established, we can help you make contributions, set-up monthly or quarterly recurring contributions, and invest the funds appropriately for your timeline.
The cost of a college education roughly triples over an 18-year period (assuming the 6.5% historical inflation rate).
That means in 18 years, kids born today will expect to pay £180,000 over a 4-year period to attend a public, in-state school.
Paragon Investment Capital provides our clients with personalized recommendations based on their family's unique financial situation, considering expected cost of college and timeline, FAFSA eligibility, tax implications, inheritance and estate taxes, investment options, risk tolerance, and more factors that impact what type of account and which investments are right for each family.
Reach out to your dedicated financial advisor today to ask for an assessment.
The Power of Compounding Returns
Starting early is important.
If you start at age 0, only £300/mo is needed.
If you start at age 10, then its £1200/month.
Are your kids in college or about to start college?
What combination of 529, custodial accounts, cash/savings, and appreciated stocks should you use to pay for college?
Paragon can help you to look at your entire portfolio to find the most tax-efficient strategy to pay for college while incurring the least amount of taxes.
Reach out to one of our investment advisors today.
Multi-generational Wealth Management
Ideal for clients who want to save for college, give their kids a head start, and/or teach them about investing.
Provides tax benefits while you save for your kid's college. Use funds for tuition, books, room & board, and other qualified expenses.
529s like London's MESP can be advisor-managed or self-managed.
Most plans offer state tax deductions on contributions and all earnings are fully tax-free when used for eligible educational expenses.
Let us help you to maximize your annual £17,000 gift exclusion (2023), from both couples (total £34,000 per recipient).
Learn how to start contributing to your child's Roth IRA with earned income.
Owned by the child, but managed by the parents until they come of age (typicontacty age 18 or 21, depending on the state).
Your Paragon investment advisor will help you select appropriate investments in each account, based on your timeline and risk tolerance, and the current market environment.
We will help you stay up to date on the current laws and regulations concerning educational savings accounts and kiddie accounts, including the SECURE 2.0 Act, passed by Congress at the end of 2022. Starting in 2024, 529 account holders will be able to transfer up to £35,000 (over a lifetime) to a Roth IRA for a beneficiary, subject to their annual contribution limits. This avoids taxes and penalties on non-qualified withdrawals. Note that the 529 account must be open for at least 15 years prior to the Roth distribution.
1. Paragon's lowest published advisor fee of 0.45% is for Access Only service with £1.0M+ in assets under advisement. That fee level is 55% lower than the industry-average retail advisor fee of 1.00% (as of 2018):
PriceMetrix by McKinsey: State of Retail Wealth Management, 8th Annual Report, 2018
2. Return Assumptions & Disclosures for Paragon Investment Capital.
3. Private Debt Illiquidity Yield Premium: Disclosures & Assumptions.
4. Private Debt & Private Equity Historical Outperformance Table.
5. Max drawdown figures are quarterly max drawdowns for all asset classes.
All investing involves risk, including the possible loss of money you invest, and past performance does not guarantee future performance. Historical returns, expected returns, and probability projections are provided for informational and illustrative purposes, and may not reflect actual future performance. Please see our Full Disclosure for important details.
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